India’s largest lender State Bank of India posted highest ever quarterly profit in the second quarter. The bank reported an 74% year-on-year rise in its net profit for the quarter ended September 30, as core income soared and bad loan provisions dropped. This
Net profit for the quarter stood at Rs 13,264.5 crore, compared with Rs 7,627 crore a year ago. On a quarter-on-quarter basis net profit more than doubled. Analysts polled by Bloomberg estimated a net profit of Rs 10,204 crore for the second quarter.
In the July-September quarter 2021-22, SBI also reported Rs 7,418 crore worth exceptional items being entire additional liability of Rs 7,418.4 crore, which had reduced the profit figure. Even in the June quarter this year, SBI reported a sharp drop in other income owing to mark to market provisions against treasury losses.
Net interest income, or core income, stood at Rs 35,183 crore, up 13% year-on-year. Other income rose 8% from a year ago to Rs 8,874 crore.
Asset quality conditions improved for the bank with gross non-performing asset ratio at 3.52% as of September 30, down 39 basis points sequentially. Net NPA ratio for the quarter stood at 0.8%, compared with 1% as of June 30.
Bad loan provisions for the quarter fell 26% year-on-year to Rs 2,010 crore.